Sanlam.
| Photo Credit: REUTERS
Sanlam through its wholly owned subsidiary Sanlam Emerging Markets Mauritius Ltd, has decided to increase its shareholding in Shriram General Insurance Co. (SGIC) and Shriram Life Insurance Co. (SLIC) by 11% and 12% respectively and decrease its exposure in Shriram Finance Ltd (SFL).
The consideration payable to acquire the combined 10.74% in SGIC and 12.02% in SLIC will be partially funded using the net proceeds from the disposal of the SFL shares. The balance of the consideration of ZAR2.0 billion (₹892 crore) will be funded using a combination of available capital resources, South African financial services group said in a statement.
The Sanlam Board recognises India as a core market and strategic pillar to achieving long term earnings growth and sustainable shareholder value creation for Sanlam. Besides, it will enable Sanlam to further enhance its position in this important market and drive growth.
The transaction entails the acquisition of 6.29% in SGIC and 7.04% in SLIC from TPG India Investments II Inc (TPG), the acquisition of 4.45% in SGIC and 4.98% in SLIC from the Shriram Ownership Trust (SOT), and the disposal of a part of Sanlam Life’s direct holding in Shriram Finance Ltd (SFL).
On March 28, Sanlam Life sold 1.59% in SFL to Shriram Value Services for ₹1,427crore.
As a result, Sanlam’s shareholding in SGIC will increase from 40.25% to 50.99% and in SLIC from 42.38% to 54.40%.. Sanlam’s shareholding in SFL will decrease from 10.19% to 9.54%. The transactions are expected to be completed during the second half of 2024.
SGIC and SLIC are joint ventures in India between Shriram Capital Ltd and Sanlam licensed with the Insurance Regulatory and Development Authority of India. Sanlam has been in partnership with Shriram Group since 2005.
